The Federal Government's plan to crack down on fringe benefits tax on cars is looking less certain following the Coalition's announcement it would oppose the change.

Opposition Leader Tony Abbott has labelled the Government's planned changes to the tax as a "serious blow" to an industry already under pressure.

The Government announced the plan this week in an attempt to save $1.8 billion to offset the cost of moving from the fixed carbon price to a floating price a year early.

It means that drivers who buy cars using salary sacrifice schemes will have to keep detailed log books breaking down their personal and business vehicle use.

Treasurer Chris Bowen had challenged the Opposition to support the measure.

A coalition of car manufactures, leasing companies and salary packaging industry representatives are seeking a meeting with the Government over its planned changes to the tax.

Previously, Mr Abbott had not revealed whether the Coalition would support the tax changes.

But after speaking to industry representatives, Mr Abbott announced a Coalition government would not be going through with the fringe benefits tax.

Flanked by members of the industry in Springwood outside of Brisbane, Mr Abbott told the media the Government's tax was a "greedy grab" that will cost jobs.

"The Coalition will oppose this in opposition, and will not proceed with it in government," he said.

"There has been no consultation, no prior consultation whatsoever, so it is a fundamentally bad process from a government which never gets the process right.

"It means far more paperwork for ordinary Australians from a government which has massively increased the paperwork burden on the people of Australia, and ... it's another tax hit on people who have suffered enough when it comes to tax increases from this government."

Automobile Association spokesman Andrew McKellar says the Government should put its plan on hold.

"We would call on the Government now to rethink the policy announcement that it has made to understand the impact it is having," he said.

"I think there is no harm in admitting a mistake coming to the table and consulting with those who have been affected and determining a different course of action."